Token shiba inu has surged more than 45 percent in the last 24 hours, breaking into the top 10 most valuable digital tokens.
Shiba inu is a satirical cryptocurrency that has no practical purpose.
With a market valuation of $42 billion, it outperforms dogecoin by about 160 percent this week.
Mr. Meckler of Cherry Lane Investments in New Vernon, NJ, said the market pushed by “fad purchasers” wanting to get in now and sell later at greater prices.
“It’s more of a collecting market than a currency market, making traditional analysis unfeasible.”
Trading is Volatile
Inu trading is volatile, and by lunchtime New York time, it had given up most of its gains but was still up around 7%.
Bitcoin, the world’s most valuable cryptocurrency, was up approximately 4%, but still below last week’s record. more
Shiba inu coins are worth a fraction of a cent to a growing number of ordinary investors. A decentralised meme token with a vibrant ecology, according to its website.
The promise of quick gains, economists say, is driving the gains. Market makers selling significant sums of the token, others alleged.
Quantum Economics CEO Mati Greenspan says people are always seeking for “the next Bitcoin.” “Quick money is a great motivator.”
Gains were also driven by speculation that the meme-based cryptocurrency could be traded on a major retail brokerage.
“Shiba has soared on expectations that it would rival or replace dogecoin,” said Chris Kline, co-founder of Bitcoin IRA.
For Jack McDonald, CEO of PolySign, a provider of digital asset custody solutions for institutional investors, the lack of a meaningful use case for shiba inu makes its sky-high price difficult to justify.
I don’t want to be holding this when the music stops,” he remarked.
Reporting by Tom Wilson in London; editing by Kirsten Donovan and Daniel Wallis